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AbbVie (ABBV) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, AbbVie (ABBV - Free Report) closed at $161.89, marking a -0.49% move from the previous day. This move lagged the S&P 500's daily gain of 0.81%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 0.37%.
Heading into today, shares of the drugmaker had gained 8.05% over the past month, outpacing the Medical sector's gain of 6.56% and the S&P 500's gain of 5.64% in that time.
Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. On that day, AbbVie is projected to report earnings of $3.13 per share, which would represent year-over-year growth of 6.1%. Meanwhile, our latest consensus estimate is calling for revenue of $13.51 billion, up 3.87% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $14.13 per share and revenue of $60.2 billion, which would represent changes of +11.26% and +7.13%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for AbbVie. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% lower. AbbVie is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, AbbVie is currently trading at a Forward P/E ratio of 11.52. For comparison, its industry has an average Forward P/E of 13, which means AbbVie is trading at a discount to the group.
We can also see that ABBV currently has a PEG ratio of 4.54. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.37 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 159, putting it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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AbbVie (ABBV) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, AbbVie (ABBV - Free Report) closed at $161.89, marking a -0.49% move from the previous day. This move lagged the S&P 500's daily gain of 0.81%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 0.37%.
Heading into today, shares of the drugmaker had gained 8.05% over the past month, outpacing the Medical sector's gain of 6.56% and the S&P 500's gain of 5.64% in that time.
Wall Street will be looking for positivity from AbbVie as it approaches its next earnings report date. On that day, AbbVie is projected to report earnings of $3.13 per share, which would represent year-over-year growth of 6.1%. Meanwhile, our latest consensus estimate is calling for revenue of $13.51 billion, up 3.87% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $14.13 per share and revenue of $60.2 billion, which would represent changes of +11.26% and +7.13%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for AbbVie. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% lower. AbbVie is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, AbbVie is currently trading at a Forward P/E ratio of 11.52. For comparison, its industry has an average Forward P/E of 13, which means AbbVie is trading at a discount to the group.
We can also see that ABBV currently has a PEG ratio of 4.54. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.37 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 159, putting it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.